Kraken announced Bitcoin Vault on May 27, 2026, a new product within its Kraken Earn suite that allows customers to earn BTC-denominated rewards on Bitcoin holdings without selling the asset. The product routes customer Bitcoin through DeFi infrastructure operated by Veda and Sentora to generate yield via lending protocols including Aave, Morpho, and Tydro.
Bitcoin Vault offers a variable annual percentage yield of 2.5%, paid in Bitcoin. The product targets long-term holders seeking passive yield tied to Bitcoin’s price exposure rather than fiat-denominated returns.
“Many Bitcoin holders on Kraken have made it clear they want simple ways to earn on the Bitcoin they already plan to hold. Bitcoin Vault is built for that mindset,” said John Zettler, Director of Product, Kraken Earn & Trade.
Bitcoin Vault is accessible via Kraken’s web interface, Pro platform, mobile app, and Krak app. The product is classified as unregulated and provided by Payward Wallet, LLC. It is unavailable in the United Kingdom, United Arab Emirates, and Australia.
Customer assets face technological, market, and operational risks, including the possibility of losing some or all assets, according to Kraken’s disclosures.
USDC Vaults precedent
Bitcoin Vault follows Kraken’s January 2026 launch of USDC Vaults, which reached $240 million in assets without incentive programs as of the Bitcoin Vault announcement. Both products operate within the Kraken Earn suite and reflect a broader industry trend: exchanges are competing to offer yield products to keep customer assets on-platform rather than in cold storage.
Competitors including Coinbase and Binance have similarly introduced yield-generating products to retain deposits and reduce customer incentive to move assets to self-custody or rival platforms.
DeFi infrastructure integration
Bitcoin Vault’s architecture relies on partnerships with Veda, a DeFi infrastructure builder, and Sentora, a strategy design and risk curation firm. The routing through multiple lending protocols reflects a diversification approach intended to manage counterparty risk across Aave, Morpho, and Tydro.
Kraken is targeting an initial public offering later in 2026, according to the company’s public statements. The launch of Bitcoin Vault and the earlier success of USDC Vaults demonstrate the exchange’s expansion into yield-bearing products ahead of that milestone.
